The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. rejecting a job candidate that fails to show up at the allotted interview time
c. GPS tracking devices in repair trucks
d. listening in on call center conversations
Ans: b. rejecting a job candidate that fails to show up at the allotted interview time
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To ensure all students are protected from getting the flu this year, your school offers free flu shots. What type of externality exists in this example?
A) negative consumption externality B) positive consumption externality C) positive production externality D) negative production externality E) neutral externality
The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded
A) 2 percent B) 5 percent C) 10 percent D) 50 percent
Constant returns to scale means that as all inputs are increased
A) total output remains constant. B) average total cost rises. C) average total cost rises at the same rate as do the inputs. D) total output increases in the same proportion as do the inputs.
What condition must be satisfied for the optimal level of a public good to be provided? Explain the problem of the optimal provision of public goods
What will be an ideal response?